Banruptcy and wages....

DonutUK

Owe about £21k, missus owes about the same, 2 of the debts are joint debts everything else is individual, we are separated but still sharing the same house (long story, but mainly to do with the kids and schools).

Mortgage, in joint names, about £103k, house could be worth anywhere from £120k-£135k.
Missus wouldn't be able to afford to buy me out.

I have an income of around £2.2k after tax per month. Currently, while still paying mortgage and most of the bills, there is a surplus of £145 a month.

Was looking at BR, but really need to know more about what happens to the house etc.

Also, i understand that the bank account would get frozen, so what happens to my wages?

fiveyearplan

You would simply open a new bank account for your wages etc and do that before BR.

Have you taken any advice from any of the debt charities?

So you are talking about £40k of debt between you. What are the joint debts. Is anything secured to the house? Have you thought of selling the house to clear the debts then just each rent your own place?

DonutUK

fiveyearplan wrote: »

You would simply open a new bank account for your wages etc and do that before BR.

Have you taken any advice from any of the debt charities?

So you are talking about £40k of debt between you. What are the joint debts. Is anything secured to the house? Have you thought of selling the house to clear the debts then just each rent your own place?

We are in a joint DMP with Payplan, which has been going since 2005. Everything had been going fine till one creditor took CCJ out on me last week.

The joints are from 2 joint bank accounts that went belly up a few years ago. Nothing is secured on the house apart from the mortgage.

Missus wouldn't be able to rent anywhere as she is out of work at the minute, all the council would offer her would be a B&B miles from the kids schools. Also, not sure with my CCJ how easy it will be for me to rent.

Not sure there would be enough left over after the sale to clear the debts, house values are based on speculative guesses. We paid £125k for in 2004 last house sold in our street for £135'ish in 2006.

fiveyearplan

What do you want to do? If it was me I think I'd want to sort out my relationship first (whether or not stay together or separate). I don't think it is a long term solution to live together even though separated (I'm not trying to be marriage guidance here but I think this needs to be sorted first so you know which road to go down).

So saying that, do you want to keep the house. Could your wife cope with the payments if you moved out? Could you cope if she moved out? Is there any chance of reconciliation? Have you spoken to any of the debt charities re your new circumstances (ie your CCJ and the DMP not working?).